Financing deal worked out for Sheraton hotel at Houston
A US$22m financing deal has been worked out for a planned Sheraton Four Points Hotel at Houston with IDB Invest playing a major role.
In a release yesterday, IDB Invest – the private sector arm of the Inter-American Development Bank – said that it has partnered with Caribbean Green Building to provide US$22 million to develop a sustainable mixed-use tourism project in Georgetown, Guyana, consisting of a 172room Four Points by Sheraton Hotel, and accompanying conference facility and retail facilities.
It appears that this project had been stalled over financing as the sod for it had been turned since July 2022 and the original projected completion date was the first quarter of this year.
The release yesterday said that the project is expected to create more than 150 jobs during construction and over 60 jobs during operations, and strengthening the local value chain. The project will source up to 40% of food and beverage items domestically. Additionally, decor and fixtures throughout the property will be sourced in part through a close collaboration with the local Arawak indigenous community.
The planned hotel features a large solar roof footprint to address the energy requirements of the property and contemplates an expansion of renewable energy once the covered parking lot is completed. Four Points Georgetown is anticipated to be the first Excellence in Design for Greater Efficiencies (EDGE) Advanced-certified hotel in Guyana and potentially the first EDGE Zero Carbon-certified hotel in Latin America and the Caribbean.
IDB Invest’s financial package includes a senior loan of US$11 million and US$7 million from First Citizens Bank and Finabank. In addition, the financing will be supplemented by a US$4 million senior loan from the Canadian Climate Fund for the Private Sector in the Americas-Phase II (C2F2) to provide financing and performance-based incentives to institute climate resilience, transition risk, and enhanced climate mitigation strategies.
IDB Invest also provided technical help for the project to achieve EDGE Advanced Certification, demonstrating a minimum of 40% savings in energy use and water consumption once construction is complete, and subsequently attaining and renewing EDGE Zero Carbon Certification during operations.
Additionally, with IDB Invest technical support, a transition risk analysis was undertaken to develop strategies to diversify the project’s demand base and revenue streams with the C2F2 financing providing incentives. The project is also addressing climate resilience by elevating its foundations to anticipate sea level rise and flood risk, and it is expected to be the first hotel in Guyana to have taken this step.
The release said that the IDB Invest’s involvement in this mixed-used project, which blends multiple uses such as commercial and cultural in one space, is to help catalyze similar climate-resilient initiatives in the hospitality sector and incentivize the private sector to develop responsible sustainable tourism projects.
Four Points by Sheraton Georgetown is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Affordable
and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10), Responsible Consumption and Production (SDG 12) and Partnerships for the Goals (SDG 17).
The release said that Caribbean Green Building Inc is a company established under the laws of Guyana owned by Tama Investments Limited and Andres Botero. Tama Investments is an investment vehicle that focuses on construction, steel manufacturing, and tourism and marine services in Miami and Latin America.
The Canadian Climate Fund for the Private Sector of the Americas - Phase II, is a fund
administered by the InterAmerican Development Bank. The release said that the purpose of the Fund is to catalyze greater private investment to climate change mitigation and adaptation projects in Latin America and the Caribbean, offering concessional financing to projects that do not benefit from a sovereign guarantee, paying special attention to the poorest and most vulnerable countries.
EICA Management, is part of the EuroBuilding Hotel Group, an established hotel operator with 11 properties under management in the Americas.
At the sod-turning on July 19, 2022, there had been no information provided on the financing
for the hotel. Botero had said that the hotel would cost US$30 million and was projected to be completed by the first quarter of this year.
Botero had also said that the investors through subsidiary, Caribbean Green Building Inc are strong believers in building a long-term relationship with Guyana. He said that the company will explore other opportunities in infrastructure, commercial and real estate.
President Irfaan Ali, in his remarks at the sod-turning said that the addition of Four Points is an integral part of the creation of a massive economic zone.